Uber CEO Dara Khosrowshahi image: World Economic Forum / Faruk Pinjo

According to a WSJ piece, Uber is in talks to sell a $1 billion stake in its self-driving vehicle unit to a group of investors led by Softbank, the company’s largest shareholder. The paper says the deal would value Uber’s self-driving unit at between $5 billion to $10 billion, with Uber retaining a majority stake, citing people familiar with the plans.

This report comes just after Uber was reported to have burned through $20 million a month on self-driving efforts. A deal like this could allow Uber – which is heading for an IPO – involve outside investors in what counts as an expensive initiative. Prospective investors for a planned IPO may likely scrutinize expensive efforts which haven’t fully launched into a stable business, as Uber, along with other notable names like Waymo, GM Cruise and Drive.ai, are yet to fully commercialize a self-driving service.

An Uber self-driving vehicle image : Uber

Uber CEO Dara Khosrowshahi ordered Uber to halt its autonomous cars from the road for much of 2018, but has indicated interest to further development, in hopes of Uber gaining a stronghold in a possible future where self-driving cars replace human drivers.

The $1 billion deal – as per the report – would include other investors, and possibly an automaker. Just recently, Waymo – the number one self-driving company – was also reported to be seeking outside funding.

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